Types Of Personal Loans For Various Needs

A personal loan is one of the most convenient loans to avail of in times of unforeseen financial emergencies. It is a type of unsecured loan, where the bank lends you money based on your creditworthiness, and no collateral is needed for the borrowed money. Minimum documentation and easy application process make a personal loan extremely versatile and the preferred loan option among many people. However, these loans can be used for a variety of purposes in India.

Let's take a closer look at the different types of personal loans for various needs.

Vacation Loan

A vacation loan is also known as a travel loan. So, whether you are an avid traveller or are preparing to step out for your honeymoon, travel loans are the way to go. It pays for all of your trip-related costs, including the purchase of airline tickets, local transportation, lodging, travel insurance, outdoor activities, visa costs, tour guides, meals, and much more. You can avail of this instant personal loan without touching your monthly budget or depleting your savings. Although credit cards too can do the job for you, a vacation loan offers quick access to cash at a low-interest rate.

Wedding Loan

In  India, weddings are considered incredibly significant events. Naturally, they come with a massive list of expenses. It is here that availing of a personal loan for weddings can help families deal with the huge pressure of wedding finances. All of your wedding-related costs are covered by this loan, including food, venue reservations, photography, makeup, hiring event organizers, searching for the ideal wedding jewellery and dress, and more. The best part about this loan is that it can be customised as per the loan borrower’s individual needs.

Education Loan

Worried about paying your child’s tuition fees or sending them for higher education? An education loan is the one you should go for without any worries. This type of personal loan has existed for decades and helps meet all academic expenses without a second thought. An education loan can be obtained by a borrower to cover the expenses of higher education for themselves or their family members.

Home Renovation Loan

Home loans are very common and are usually availed while buying real estate or renovating houses. A home renovation loan can help in the repair and renovation, and cost of maintenance of your house without exhausting your savings. It covers all expenses including buying new furniture, painting, remodeling the kitchen or washroom, getting new fixtures, and so on.

Medical Loan

What do you do when there is a medical emergency at home, or you don’t have sufficient funds to pay your medical bills? Enter a medical emergency loan that provides instant approval and help during healthcare emergencies. They also come in handy when the limit of your insurance falls short to cover your expenses.

Pension Loan

Looking to apply for a personal loan for pensions? Pension loans are usually availed by retired employees. There are no eligibility criteria to take this loan. For this type of personal loan, some banks provide several times the pension that retired personnel would have received in the month before completing the loan application.

Consumer Durable Loan

As inflation skyrockets, prices for goods also increase. With a consumer durable loan, you can easily purchase any consumer durable item such as a fridge, television, phone, washing machine, microwave, etc. The purchase price is broken up into EMIs, which can be repaid over a chosen timeframe. While others may not, However, some products may require a down payment while others may not. Please know that banks too provide free EMIs on consumer durable loans.

Now that you are aware of the various types of personal loans, ensure that you avail them accordingly without denting your personal savings.